Scranton City Council in a 3-2 vote Thursday approved the University of Scranton's plan to demolish Leahy Hall as a first step toward replacing the structure with an eight-story rehabilitation center.

Councilman Frank Joyce had been on the fence but ultimately decided to support the proposal after an emotional debate over the past two months about the structure's historical significance and the university's growth.

University officials were pleased with the decision Thursday.

"Our $47.5 million center will provide substantial benefits to the city through the community service activities it will facilitate, the more than $900,000 in city taxes and fees it will generate and the estimated 300 much-needed construction jobs it will create," said James Devers, the college's associate vice president for facilities operations, in a prepared statement. "The center is essential to the university's continued success in educating students in our highly competitive occupational therapy, physical therapy and exercise science programs. Our construction timetable is ambitious as we strive to have the facility ready for classes by fall 2015."

The university still has a significant hurdle to clear before the project can go forward, however. The city's board of zoning appeals denied three variances the university needs for construction in a 3-2 vote.

A hearing on the university's appeal on all three rejections is scheduled for Aug. 5 in Lackawanna County Court.

Before Thursday's vote, Councilman Pat Rogan, who supported the demolition, said the decision came down to jobs and money the project would generate versus historical preservation.

"This is a piece of history," said Councilman Jack Loscombe, who opposed the demolition of the former YWCA building with Council President Janet Evans.

Mrs. Evans said the building was one of several designed by architect Edward Langley, the city's "premier architect" near the turn of the century, and has been designated a historic building. She said historic preservation is a form of sustainable economic development.

Mr. Joyce said he had planned to support the demolition last week but motioned to table the matter after he was troubled by deep division on the Historical Architecture Review Board, which recommended the demolition in a 4-3 vote.

Mr. Joyce said he thinks the university should pay more to compensate the city for the property it takes off the tax rolls, drop its lawsuit against the city to get out of paying the parking tax and pay the $17,000 it owes for 17 false alarm calls to the university so far this year.

But he said vote was not about those issues.

"The building brings a state-of-the-art facility to the city of Scranton that will be used to provide the public physical therapy services instead of another out of business sign," Mr. Joyce said.

Council solicitor Boyd Hughes said the university has greatly exceeded its original footprint designated by public officials and approved by the Department of Housing and Urban Development in 1974. Now, he said, one-third of city property is tax exempt and 21 percent of that property belongs to the university.

Mr. Rogan said approving the demolition encourages the university to develop on property it already owns instead of further expanding.

In other business, council:

n authorized the city to accept a $2.04 million grant from state gaming funds to pave Scranton streets.

n accepted the Historical Architecture Review Board's recommendation to approve the certificate of appropriateness for several infrastructure improvements to Albright Memorial Library including masonry reconstruction; window replacements; flashing, reassembling and repointing the Vine Street porch; and creating a new free-standing stone monument sign with a bronze plaque.

n approved the transfer of Clarks Summit-based Great Uncle Peter's LLC of Newton Twp. to Terra Preta LLC, for use at 222 Wyoming Ave.

Contact the writer: kwind@timesshamrock.com, @kwindTT on Twitter

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